The Fear & Greed Index is more than just a daily sentiment snapshot—it reflects emotional extremes during the most pivotal moments in market history. By analyzing how the index responded to major financial events from 2008 to 2025, traders and investors can gain valuable insights into crowd behavior and how to anticipate future turning points.
What the Fear & Greed Index Measures
The Fear & Greed Index, created by CNN Business, combines seven market indicators, including volatility, momentum, and safe haven demand, into a single score from 0 (Extreme Fear) to 100 (Extreme Greed).
Studying historical data reveals how extreme sentiment aligns with market tops, bottoms, and reversals—especially during crisis periods or euphoric rallies.
Key Historical Phases (2008–2025)
🟥 2008 Global Financial Crisis
- Fear & Greed Index: Dropped below 10
- Market Context: Collapse of Lehman Brothers, stock markets crash
- Outcome: S&P 500 bottomed in March 2009; extreme fear preceded recovery
🟧 2011 U.S. Debt Ceiling Crisis
- Index Reaction: Fell sharply to the low teens
- Market Impact: Dow dropped ~2,000 points in 2 weeks
- Sentiment Lesson: Panic-selling created strong rebound conditions
🟨 2015–2016 China Slowdown & Oil Crash
- Fear levels: Hovered between 10–20
- Market Behavior: Choppy markets, rising VIX
- Lesson: Sustained fear leads to cautious, range-bound trading
🟩 2017 Crypto & Stock Market Euphoria
- Fear & Greed Index: Touched 90+ several times
- Context: Bitcoin nears $20,000, global stocks surge
- Result: Followed by sharp correction in early 2018
🟥 March 2020 – COVID-19 Crash
- Fear & Greed Index: Hit all-time lows (score: 3–5)
- Markets: S&P 500 lost 30% in a month
- Outcome: Fear signaled major bottom; markets rebounded rapidly
🟩 November 2021 – Peak Euphoria
- Index: Greed above 90
- Assets: Tech stocks and crypto at all-time highs
- Result: Start of a long bear market in 2022
🟨 2022–2023 Bear Market
- Index: Hovered in fear zone (20–40) for months
- Events: Inflation, rate hikes, tech layoffs
- Trend: Gradual sentiment recovery in late 2023
🟩 2024–2025 Market Recovery
- Index Behavior: Increasingly greedy, scores in 60–80 range
- Catalysts: AI boom, interest rate cuts, rising global risk appetite
- Outlook: Traders should stay alert for overbought sentiment and possible correction setups
Visual Summary
| Year | Major Event | Sentiment Trend | Market Reaction |
|---|---|---|---|
| 2008–2009 | Financial Crisis | Extreme Fear (5–10) | Strong recovery from bottom |
| 2017 | Bull Market Peak | Extreme Greed (90+) | Market correction followed |
| 2020 | COVID Crash | Record Fear (3–5) | V-shaped rebound |
| 2021 | Crypto & Tech Bubble Peak | Greed (90+) | Bear market starts in 2022 |
| 2025 | Recovery & Euphoria | Greed (60–80) | Mixed outlook with upside bias |
What Traders Can Learn from These Trends
- Fear creates opportunity: Most significant rebounds began at peak fear levels
- Greed signals caution: Major corrections often followed extreme greed
- Patience pays: Waiting for sentiment extremes to align with technicals leads to higher probability setups
- Context matters: Pair sentiment with macroeconomic factors for better decisions
FAQs
Where can I find historical Fear & Greed Index data?
CNN Business doesn’t offer downloadable data, but some platforms (like TradingView or Quiver Quant) offer sentiment tracking. You can also take screenshots or log data manually.
How reliable is the index across years?
It reflects sentiment accurately in most major market events, but should be used with technical/fundamental tools.
Is there a crypto equivalent?
Yes, Alternative.me provides a similar sentiment index for Bitcoin and crypto assets.
Can past patterns help predict future moves?
They can offer context, but not certainty. Use sentiment history to enhance—not replace—your strategy.
How often should I check the index?
For swing or position traders, once daily is enough to stay aligned with broader market mood.